This article is also available in Spanish.
Dogecoin has had ups and downs In the past 7 days: From falling below the support level at $0.095, to bouncing back and hitting a notable resistance at $0.099. After this short rise, Dogecoin has seen Another downward turn Where the bulls were unable to maintain the momentum.
Related reading
It dropped again, breaking through several support levels before bottoming out at $0.0899. Since bottoming at $0.0899, DOGE has surged again by over 7.75% to $0.09687 at the time of writing. While this price rise may seem relatively modest compared to the larger market movements, it is particularly noteworthy given the current state of the cryptocurrency market as a whole.
Dogecoin price movement
The last Dogecoin price rise This can largely be attributed to a social media post by billionaire Elon Musk on X, formerly known as Twitter. In the mailMusk, the CEO of Tesla and owner of X, shared an AI-generated image of himself sitting behind a desk with a sign displaying the letters “DOGE.” The image was accompanied by the caption “Department of Government Efficiency.”
Although Dogecoin was not explicitly mentioned in the post, it did spark excitement among market participants, many of whom are familiar with Musk’s past influence on the meme coin. However, the surge was not as much as many might have expected, as it was not enough to cause a significant price spike.
Despite the initial surge following Musk’s post, Dogecoin’s price remains below its seven-day high. It continues to trade within a relatively tight consolidation range. As of writing, Dogecoin is valued at $0.0956, sitting between a key resistance level of $0.1, which corresponds to the 0.382 Fib retracement level from August 24, and a support level of $0.09, which is marked by the 0.786 Fib retracement level from the same period.
Slight rise
Despite a slight upward move, Dogecoin is still facing significant resistance barriers that are preventing it from breaking out of its current range. According to the Fibonacci retracement indicator, DOGE holders currently have a lot of work to do to trigger buying pressure to push it higher again. Interestingly, On-chain data A report from IntoTheBlock reveals that Dogecoin trading volume and overall activity have declined significantly since the beginning of September.
This decrease in activity increases the likelihood of continued price consolidation in the near term. In the absence of a significant influx of trading volume or a major catalyst, Dogecoin may struggle to gain the momentum needed to break out of its current range.
Related reading
However, some on-chain signals such as total exchange flows are Currently pointing to an upward trend.In case of a breakout of the consolidation, the first short-term price target is around $0.11. On the other hand, a breakdown below the support level could lead the price to drop below $0.11. DOGE may pay Less to retest 0.08.
Featured image from Newsweek, chart from TradingView